Purchasing expensive equipment can be daunting for small business owners, especially those managing most of their expense accounting in house. Understanding balance sheet expenses and depreciation schedules can be confusing for inexperienced bookkeepers. Adilas can help you get your books organized. Bloomberg View offers this commentary on tax relief for small businesses:
Congress simplifies the rules for capital expenditures.I know — taxes and depreciation schedules put you into a coma. Before your eyes glaze over, follow what this means. Before, when a business bought or leased a piece of equipment, some of the costs were written off each year through depreciation. This offered businesses some incentive to invest in equipment, but it made their accounting and taxes more complex than necessary.
The change to Section 179 eliminates that depreciation schedule. Small companies can simply purchase as much as $500,000 in business-related equipment and write it off that year. It’s a much simpler approach to making and accounting for capital expenditures.
Read more from the Source: A Break for Small Business – Bloomberg View